According to an interesting article I came across on Thisismoney.co.uk, housebuilders claim that the government’s Help to Buy scheme, which was initially designed to bolster the housing market, is more than likely to become a permanent fixture of the UK economy.

Since the economic meltdown some six years ago, stricter rules and the need to fix ruined balance sheets, mean some banks are cautious about offering the 95% loan-to-value mortgages, which are a crucial aspect of the new-build market.

The new-build sector attracts the lion’s share of first-time buyers, who often find it difficult to raise the deposit funds needed for lower loan-to-value mortgages.

Many housebuilders believe that the banks are just not interested in providing mortgages of over 80% loan-to-value in new-build properties, and this leaves a huge gap which only the government seems likely to fill in the near future.

The government has previously extended the scheme once before, and agreed for it to go beyond the next election. Instead of ending in 2016, the first part of the scheme will now end in 2020, at least in England, anyway. The second part of the scheme is still due to finish at the end of December 2016. Could the new-build industry really provide the same degree of new homes without the help of the Help to Buy scheme?

Are you a first-time buyer and looking to take advantage of the Help to Buy scheme? While many hope it will be around for the foreseeable future, this is by no means a given. If you’re looking to take a leap on to the property ladder, perhaps now is the time.

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